Biotech Sector Downgraded by Goldman Sachs

Biotech stocks are near record highs. However, Goldman Sachs has downgraded the sector, citing valuation. Why it still likes Amgen.

Is the biotech rally over? That question has been asked repeatedly in the past year as biotech stocks and the sector's major indices reached record highs, leaving the S&P 500 far behind.

There is no shortage of analysts or fund managers betting that stock prices will keep rising in 2014. But Goldman Sachs has shifted gear. In a 61-page note published Sunday, the firm's biotechnology analysts downgraded the sector from Buy to...